Last updated : 05 January 2004 By Ben Collins
The deal means Pearce, who had a spell as player-boss at Forest, will remain at City for another 6 months but is entitled to leave for another role at any point.

Pearce has been linked with vacant manager posts at Stoke, West Ham and Oldham in the last year.

Kevin Keegan said: "He will be the one who decides whether he goes or not. I will not say to Stuart that it is time to go.

"He is part of the backroom staff and a very important part as well. If he comes tomorrow and says there is a chance to go then he knows he only has to ask.

"Eventually he wants to be a manager and he is ready to be a manager."

Of the former England captain's role, the City boss added: "Stuart has plenty of responsibility here. He works very closely with Derek Fazackerley on the training.

"He has a big input. It is not like it is just Arthur Cox and me. It is the four of us. We talk through things together."